On this page of StockholderLetter.com we present the latest annual shareholder letter from American Water Works Company, Inc. — ticker symbol AWK. Reading current and past AWK letters to shareholders can bring important insights into the investment thesis.

 •  3/27/2025 Letter Continued (Full PDF)
 •  3/28/2023 AWK Stockholder Letter
 •  3/26/2024 AWK Stockholder Letter
 •  More "Water Utilities" Category Stockholder Letters
 •  AWK Benford's Law Stock Score = 81

AWK Shareholder/Stockholder Letter Transcript:

2024
Annual Report


TO OUR
SHAREHOLDERS,
It is my pleasure, for the seventh year in a row as Board
Chair of the American Water Board of Directors, to report
that American Water again delivered on its strategic
plan with a disciplined approach to operations, capital
deployment and regulatory execution. American Water   s
2024 financial performance demonstrates that the
company is growing strategically and is well-positioned
for the future.
For the year ended December 31, 2024, earnings per
share (EPS) growth and dividend growth exceeded
8 percent, which aligns with the long-term compounded
annual growth target of 7-9 percent for both.
With these results and expectations for consistent
future earnings growth, the Board again increased the
dividends paid in 2024, the 16th consecutive year
of increases. Annual dividends paid have grown at a
compounded annual rate of 8.9 percent over the last
five years.
These positive results are an outcome of the
commitment and adherence to company values
and sound execution of the business strategy by
the company   s dedicated employees. The American
Water Board of Directors would like to thank you, our
shareholders, for your continued trust and support.
Please plan to join the virtual Annual Meeting of
Shareholders at 10:00 a.m., Eastern Time, on
Wednesday, May 14, 2025.
Sincerely,
KARL F. KURZ
Board Chair
COMPOUNDED ANNUAL GROWTH
RATE OF ANNUAL DIVIDENDS PAID
OVER THE LAST FIVE YEARS
AMERICAN WATER | 2024 ANNUAL REPORT
8.9%
GROWTH
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DEAR FELLOW
SHAREHOLDERS,
American Water is pleased to announce another year
of achieving planned results, with notable growth for
both earnings and dividends, all while maintaining a
very strong balance sheet. This success is due to the
unwavering commitment and hard work of our dedicated
employees, whose efforts have been instrumental in
driving our strategic goals forward.
This report outlines how we adhere to our strategy and
values and effectively implement our plans. Our key
stakeholders are integral to how and why we execute
on our mission. The work we do every day is guided by
goals we have set for ourselves to align with our key
stakeholder groups     our customers, our colleagues, our
shareholders and the regulators and policymakers who
enable us to operate.
The company successfully executed its comprehensive
plan, achieving top-tier industry growth for both earnings
and dividends in 2024. We invested $3.3 billion in
regulated operations, which prominently focused on
infrastructure renewal. Additionally, through acquisitions
and organic growth, we expanded our customer base by
nearly 90,000 and achieved the company   s acquisition
customer growth target of 2 percent.
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We continue to be the leader in all aspects of the water
and wastewater utility industry inspired by our corporate
mission   delivering safe, clean, reliable and affordable
water and wastewater services to 14 million people, and
growing, in this country.
We have achieved a five-year total shareholder return
(TSR) of 11 percent and a ten-year TSR of 183 percent.
Though certain macro-economic issues have impacted
our near term relative TSR performance, we are certain
that our industry-leading results in 2024, together with
our earnings growth and dividend growth expectations,
continue to offer exceptional value for our shareholders.
Building on 2024   s success, we expect to thrive in 2025
and beyond as a solutions provider for our customers
and the communities we serve. Our proven record as
a trusted regulated water utility will continue. We offer
low-risk, predictable growth. We plan to invest $40-$42
billion in capital over the next decade, balanced by O&M
cost control, regulatory and legislative support, as well
as application of new technologies. While the majority
of our capital plan is dedicated to basic replacement of
aging pipes, we are also focused on fortifying our water
and wastewater systems through resilience spending and
investments in water quality projects to meet increasing
standards of compliance.
AMERICAN WATER | 2024 ANNUAL REPORT

The execution of our strategy contributes to our performance and
aligns with our core values. Already this year, the company was
recognized by Forbes as one of America   s Most Trusted Companies;
acknowledged by Newsweek as one of America   s Most Responsible
Companies; named one of America   s Most JUST companies by
JUST Capital; and recognized by CNBC for our commitment to
employees, customers, communities and shareholders.
And as we continue to look to the future, as we announced in
February, I am retiring on May 14, 2025. John Griffith, currently
serving as our president, will lead American Water as its new
president and CEO. Under John   s stewardship, American Water
is poised to maintain its exemplary record of industry leadership
and high performance. This seamless transition underscores the
company   s dedication to executive succession planning, helping
ensure that American Water benefits from a capable and experienced
leadership team for years to come.
As I step into retirement, I want to thank our board of directors, our
talented leadership team and our dedicated employees for their
unwavering commitment to excellence at American Water. You are
simply the best. And I want to thank you, our investors, for your
strong support of our company. It has been an honor to lead such
a dedicated, high-performing team for the last six years and I look
forward to seeing the company   s future achievements under
John   s leadership.
I look forward to the bright future of this great company and
hope you do too.
y,
Sincerely,
M. SUSAN HARDWICK
Chief Executive Officer
AMERICAN WATER | 2024 ANNUAL REPORT
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 3/27/2025 Letter Continued (Full PDF)